Electric vehicles (EVs) have been around for more than a century and were first mass-produced in the United States nearly 30 years ago when General Motors rolled out the EV1. Since then, there has been a steady rise in the number of EVs on the market.
However, it wasn’t until the federal Inflation Reduction Act (IRA) passed in 2022 that the auto industry kicked electric production into a much higher gear. The law incentivized companies and government agencies to produce more EVs, batteries, and charging stations.
Photo Courtesy The Henry Ford
According to a March report from the Environmental Defense Fund, North Carolina is one of the leaders of the current EV investment boom, with a “meteoric rise” in investments in recent months.
Announced investments totaled $9 billion in the six months prior to the report, bringing the total financing to more than $19 billion since the IRA passed.
David Kelly, NC director for the Environmental Defense Fund, credits the IRA and the 2021 Bipartisan Infrastructure Law for encouraging capital investment in the EV industry and related supply chains.
“In North Carolina, I think we pair that policy support with a world-class workforce and a strong reputation that we have as a state as a leader in the clean tech industry space, and that we’re seeing the benefits of that competitive advantage relative to our peers’ states,” Kelly told WCNC in a March interview. “I think what we’re seeing is just the beginning.”
Photo Courtesy Environmental Defense Fund
EV investments in the Tar Heel State include facilities to produce cars, batteries, and battery materials. Much of the growth in that sector has been driven by Japanese automaker Toyota, which is building a battery manufacturing plant in the Randolph County town of Liberty.
As previously reported by The Business Download, Toyota has continued to expand its job creation and investment targets for the plant. The company now aims to invest $13.9 billion, which is more than 10 times the initial planned investment.
Since the IRA passed, Toyota has announced more than $10 billion in new funding. The company said it will create an additional 3,000 jobs at the facility, bringing its total to 5,100 new jobs. A press release said it is expected to begin producing EVs in its North Carolina plant in 2025.
Photo Courtesy Toyota Newsroom
In addition to Toyota, other companies have announced plans for battery factories in North Carolina, including DAI Nippon Printing, Forge Nano, VinFast, and Epsilon Advanced Materials, WRAL reported.
Vietnamese auto company VinFast is in the process of building an 18-acre plant in Chatham County, North Carolina, where it will manufacture EVs. According to Business North Carolina, the facility is expected to employ up to 7,500 people and produce 150,000 vehicles a year.
These investments are part of a larger plan in North Carolina to ramp up its clean energy and EV industries.
Last year, the state passed a major milestone when it announced that more than 70,000 Zero Emission Vehicles (ZEVs) have been registered.
The number in the state rose by 55% between August 2022 and August 2023 alone. North Carolina Gov. Roy Cooper’s goal is to get 1.25 million EVs on the road by 2030.
Photo Courtesy VinFast
North Carolina is also nearing its goal of having at least 80,000 registered ZEVs by 2025. Cooper established that target in 2018 when he signed Executive Order No. 80 and directed the North Carolina Department of Transportation to develop a strategic plan to guide ZEV adoption in the state.
“I want more of these energy solutions to be based in North Carolina and exported throughout the world and the United States,” shared U.S. Senator Thom Tillis at an event hosted by Consensus. “I want the United States of America to be the majority intellectual property owner for the next generation of energy and climate solutions throughout the world.”
